A Michigan School of Business article discusses a Management Science study that reviews the business impact of cause marketing, with some interesting findings.
It’s this spillover effect to a company’s other products that can make cause marketing worthwhile, the researchers say. In fact, even if a firm is unable to increase the price of a cause-related product enough to compensate for the donated money or if it simply ties a low-selling product to cause marketing, it can still increase its profits — as long as consumers feel good about buying the company’s other products.
Filed under: Business
